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I wanted to just take a moment of your time to talk about appraisals. First, let’s discuss what an appraisal is because a lot of homeowners are confused about the difference between an appraisal and a county assessment.
An appraisal is a qualified appraiser’s assessment of a home’s current value based on recent sales data.
A county assessment, on the other hand, is also based on recent sales but is not a true picture of your home’s total value. It doesn’t take the true picture of your home’s value into account, so you can’t make a direct market value based on this.
Here’s the situation as to why sellers dread appraisals and buyers love them: If you’re a seller and your home is being appraised, the appraiser will look at comparable sales over the last 90 days within a few miles of your home. It can be a little frustrating for homeowners if there is a great comparable property that’s five miles away or one that sold 100 days ago.
"Each situation is different."
Why do buyers like appraisals? It’s kind of a double check for them. If they feel like they’ve overpaid for a house and the appraisal shows the same thing, it keeps them in check to make sure they aren’t spending more than the home is worth.
If an appraisal comes in low, there are three options if you want to proceed with the sale:
1. The seller reduces the price to the appraised value.
2. The buyer pays the difference between the sale price and the appraisal in cash.
3. The buyer and seller meet in the middle.
Each situation is different, but we’re usually able to work things out one way or another. If you have any questions about appraisals or anything else related to real estate, give me a call or send me an email. I look forward to hearing from you.